In this Feb. 3 file photo, Treasury Secretary Jacob Lew delivers keynote remarks and answers questions during an event about the federal debt limit in Washington.

Getty Images

Treasury Secretary Jacob Lew on Wednesday said Americans were getting “confusing cross signals” on the health of the labor market and had a bullish outlook for the economy this year, in a wide-ranging interview with Charlie Rose.

He also said the country would only truly know whether new regulations prevent any company from being “too big to fail” during the next financial crisis, when new rules are put to the test.

Mr. Lew weighed in on everything from China to immigration policy; the debt ceiling to President Barack Obama’s legacy. He stopped short, however, of offering new policy ideas or giving hints as to what might be in the White House’s budget proposal next month.

1) Economy: Mr. Lew appeared to concur with outside estimates that the economy could grow at or beyond 3% in 2014 and 2015, though he was careful not to pinpoint an exact figure. When asked about two straight months of disappointing jobs numbers, Mr. Lew tried to pick out positive highlights, such as a growth in construction jobs. Several more months of weak jobs numbers, however, and Mr. Lew and other White House officials might have to adjust their talking points.

2) Growth: Mr. Lew said that for the first time in several years, the economy was beginning a year with “tailwinds.” He reiterated the White House push for more spending on infrastructure, which he said should have bipartisan appeal.

He said that while there are a number of different data points worth watching, “the trajectory over the last six months has undeniably been in a positive direction.”

3) Budget: He said Republicans’ willingness to allow a “clean” debt ceiling increase was in large part a result of the blowback from the October government shutdown. “People learned from it,” he said.

4) Immigration: He said he’s “optimistic” a deal can get done (few people in Washington are optimistic an immigration deal is obtainable). “I would personally argue that this is a case where good policy and good politics ultimately come together, which is one of the reasons why I’m more optimistic. I’m not saying it’s a certainty. But the conversation’s by no means over. And, you know, the challenge of doing hard things is to keep at them.”

5) Obamacare: He largely dodged a question about Mr. Obama’s statement a few years ago that if people liked their health care plan they would be allowed to keep it under the new health care law. “I think people are seeing the choices they have clearly. And I think people are going to like the choices they have as they understand them. That’s going to be ultimately the test. It’s not about what people said two or four years ago.”

6) Too big to fail: Mr. Lew said regulators were working hard to finalize banking rules, and said some more notable rules would be completed shortly. But he said the ultimate test of whether they have eliminated the notion that any company is “too big to fail” will come during the next financial crisis. “Well, the question that you asked — that I’m frequently asked — fundamentally can only be answered in a financial crisis. And the question is, have we made dramatic changes? Are we dramatically stronger? The answer to that in unequivocally yes.”

7) Financial market risks: He said regulators have made lots of progress in tightening regulatory gaps, but he pointed to two areas that he said need more work. One is what he called the “shadow banking” sector, where he said “there’s been a shift to resources into institutions that are outside of the traditional banking world.” He also said policy makers have more work to do to make sure that if a multinational company falters, as Lehman Brothers did in 2008, there is a structure in place to handle it across multiple countries.

8) Europe: Mr. Lew – without naming names – took another shot at Germany. The Treasury has said Germany needs to do more to spur demand in Europe. “So, you have to look at these major parts of the world economy and say, ‘What could they do to grow more?’ And we’ve been clear that in Europe, we think that the countries that have surpluses could do more to stimulate growth, stimulate demand. Europe needs demand. The world needs more demand.”

9) Cyber security: Mr. Lew spent a large amount of time discussing China. On the issue of intellectual property theft, Mr. Lew made clear this is a delicate issue that keeps coming up with the Chinese. He said Chinese leaders recognize that changes need to be made to protect U.S. companies from cyber theft, but he said action so far has been slow at best. “I think that there’s an understanding, and I do believe that there’s a commitment, and I haven’t yet seen the sequence of events that will give us confidence it’s happening. And that’s why we have to stay engaged and keep pressing because the more we push the more progress they make.”

10) China: In a rather bold statement, he said the direction of the global economy depends in large part on growth in the U.S. and China.

11) Emerging markets: He made a careful – but clear – barb at some emerging market economies when asked about problems in Turkey, India, and Brazil. He said he wasn’t going to “name names” but said “I think if you look at the performance of currencies and the performance in the market, there is a real differentiation between countries that have taken the tough decisions and countries that maybe haven’t.”

12) Accomplishments: Mr. Lew said Mr. Obama still had a number of priorities for the remainder of his term in office, and he anticipated that at the end of it many will remark on how much was accomplished. “When people look back they’re going to say, ‘Boy, they got a lot done.’”

About Washington Wire

Washington Wire is one of the oldest standing features in American journalism. Since the Wire launched on Sept. 20, 1940, the Journal has offered readers an informal look at the capital. Now online, the Wire provides a succession of glimpses at what’s happening behind hot stories and warnings of what to watch for in the days ahead. The Wire is led by Reid J. Epstein, with contributions from the rest of the bureau. Washington Wire now also includes Think Tank, our home for outside analysis from policy and political thinkers.